Friday, July 16, 2010

Do I really need 2.5 million to retire?

Your Belize may be traditional retirement with in the early years some travel time and later on, money for grand children’s gifts and senior assisted living. Or, you may decide a more active retirement with a part time career into your 70s.


So you will have to add up your anticipated income:

1 Canada Pension – husband plus wife approx. $22,000

2 Old Age Security – husband and wife approx. $12,000

Total: $ 34,000 (max, insurable benefits– note that there may be claw-backs through income taxes)

4 Pension(s) from past employment or veteran

5 Life insurance pay out upon death of spouse minus loss of pension

6 Part-time income (after taxes, E.I., C.P.P., etc.)

___________________________________________________________________________
Total Income:


Investment Income required: Cost-of-living minus Total Income.

Do consider that you build in inflation protection as otherwise your ‘Cost-of-living’ will increase and your ‘Net Worth’ will decrease in terms of purchase power.

You could reduce your cost of living by downsizing your residence (there is a consumption component here), replace your vacation property with a time-share, etc.

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